What's the Worst That Can Happen When Driving Without Auto Coverage?

You have probably heard that you should never drive without insurance coverage, even for a trip round the block. This advice is for your own benefit because the consequences for driving without coverage are dire. Here are a few examples of these consequences:

Traffic Ticket

This is one of the first consequences you will face. The traffic ticket will attract a monetary fine and an increase in auto insurance rates. The fine depends on the jurisdiction of your arrest while the increase in rates depends on multiple factors such as the policies of your insurance company and the number of points already on your driving history.

License and Registration Suspension

This is another common penalty, and once your license and registration are canceled, you won't be able to drive without getting both reinstated. Of course, you will have to spend some money, in terms of administration fees and probably legal fees, to get their reinstatement. At the same time, a history of these suspensions is likely to impact your future auto coverage rates.

SR-22 Insurance

This is a form that proves to the authorities that you have adequate insurance coverage. it is usually demanded of drivers who have had their licenses suspended, were convicted of driving under the influence or have a history of multiple traffic violations. Its main aim is to show that you are financially responsible and will be able to (via your insurance coverage) pay any damages that may be demanded of you should you cause an accident. This form of coverage automatically attracts high insurance rates since its used by high-risk drivers.

Loss of Insurance Coverage

Most of the penalties of driving without insurance coverage are automatic. For example, you expect a traffic ticket and a related fine if you really don't have coverage. However, some of the consequences depend on other factors such as your insurance company's laws and the reason you are driving without coverage. For example, you may find it difficult to buy coverage in the future if you were caught driving without insurance because your insurer had canceled your policy for a major violation.

As you can see, it's extremely dangerous and costly to drive without coverage. If you lose your coverage for any reason, stop driving until you can buy coverage. If it's a question of money, it's better to buy the cheapest policy possible (provided it meets state requirements) than to drive without coverage at all. Learn more by contacting insurance agencies like Manassero Insurance Agency Inc.